SEC Alert! Comment period OPEN to approve if SEC should continue to collect information provided for in Rule 15c2-11.
'The Rule is designed to prevent broker-dealers from publishing or submitting quotations for OTC securities that may facilitate a fraudulent or manipulative scheme.'
https://public-inspection.federalregister.gov/2023-12851.pdf
- Rule 15c2-11 governs the publication of quotations for securities in a quotation medium other than a national securities exchange (i.e., over the counter (โOTCโ) securities).
- The Rule is designed to prevent broker-dealers from publishing or submitting quotations for OTC securities that may facilitate a fraudulent or manipulative scheme.
- Subject to certain exceptions, the Rule prohibits broker-dealers from publishing any quotation for a security or, directly or indirectly, submitting any quotation for publication, in a quotation medium unless they have reviewed specified information concerning the issuer.
- Based on the current structure of the market, the Commission staff believes that the recordkeeping and review requirements under Rule 15c2-11 apply to 86 broker-dealers, one qualified interdealer quotation system (โQ-IDQSโ), and one registered national securities association.
Based on information provided FINRA, SEC staff understands that in the 2022 calendar year, 377 Form 211 applications were filed to initiate the publication or submission of quotations of OTC securities:
- 60 of these Forms 211 concerned OTC securities of prospectus issuers, Regulation A (โReg. Aโ) issuers, and reporting issuers;
- 258 concerned OTC securities of โexempt foreign private issuersโ; and
- 59 concerned OTC securities of โcatch-all issuers.โ
- The collection of information that is submitted to FINRA for review and approval is currently not available to the public from FINRA.
How to comment:
- https://www.reginfo.gov/public/do/PRAMain
- E-mail to:
[email protected]subject: [SEC File No. 270-196, OMB Control No. 3235-0202] - Comments due 30 days from 6/16/23
TLDRS:
SEC OPENS for PUBLIC comment whether to continue collecting information provided for in Rule 15c2-11.
- 'The Rule is designed to prevent broker-dealers from publishing or submitting quotations for OTC securities that may facilitate a fraudulent or manipulative scheme.'
- Based on the current structure of the market, the Commission staff believes that the recordkeeping and review requirements under Rule 15c2-11 apply to 86 broker-dealers, one qualified interdealer quotation system (โQ-IDQSโ), and one registered national securities association.
- The collection of information that is submitted to FINRA for review and approval is currently not available to the public from FINRA.
